Zscaler Reports Impressive Q3 Results and Executive Share Sales
Date: September 23, 2023
Zscaler (NASDAQ:ZS), a prominent cloud security provider, recently released its quarterly earnings report for the period ending September 5th. The company’s financial performance surpassed market expectations, showcasing continued growth in key areas.
During the third quarter, Zscaler reported earnings per share (EPS) of $0.64, outperforming analysts’ consensus estimates of $0.49 by $0.15. This positive deviation highlights the company’s ability to deliver strong financial results in an increasingly competitive market.
Additionally, Zscaler marked a significant milestone with its revenue reaching $455 million for the quarter—an impressive surge of 43.0% compared to the same period last year. These figures exceeded analysts’ projections of $430.38 million and reflect continued demand for the company’s services.
Despite this success, it is worth noting that Zscaler faced a negative return on equity of 31.64% and a negative net margin of 12.51%. While these figures may raise concerns for some investors, they should be viewed within the broader context of the company’s overall growth trajectory.
In other news surrounding Zscaler, CEO Jagtar Singh Chaudhry recently sold 2,844 shares in a transaction dated September 18th at an average price of $154.45 per share—amounting to a total value of $439,255.80. Following this sale, Chaudhry holds 372,091 shares in the company, valued at approximately $57,469,454.95.
Furthermore, CFO Remo Canessa sold 18,693 shares on September 18th at an average price of $154.28 per share—an overall value of $2,883,956.04. After this transaction concluded successfully; Canessa now owns 253,872 shares in Zscaler, valued at around $39,167,372.16.
It is important to note that these executive share sales are a regular occurrence and often represent the diversification of personal financial portfolios or other strategic considerations. They should not be viewed as an indication of any negative sentiment towards the company’s future prospects.
The recent transactions were disclosed in legal filings with the Securities and Exchange Commission (SEC) and can be accessed using the provided hyperlinks. These public disclosures ensure transparency and compliance with regulatory requirements.
In total, insiders sold 145,003 shares of Zscaler’s stock worth $21,871,946 over the last quarter. Currently, company insiders own approximately 19.80% of Zscaler’s outstanding shares—an important element to consider for investors evaluating long-term growth potential.
Zscaler continues to cement its position as a leading provider of cloud security solutions through impressive earnings results. With strong revenue growth and successful executive transactions showcasing investor confidence, Zscaler appears to be on solid footing as it moves forward in the industry.
Disclaimer: The information provided in this article is based on publicly available sources and does not constitute financial advice. Readers should perform their own research or consult with a professional before making investment decisions.
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Zscaler Inc. Expected to Post Better-than-Expected Earnings in Q1 2024, Receives Positive Analyst Projections
Zscaler Inc. (NASDAQ:ZS), a leading cloud security provider, is expected to post better-than-expected earnings for the first quarter of 2024, according to equities researchers at Zacks Research. The research firm recently raised its EPS estimate for the quarter from ($0.45) per share to ($0.36) per share. This positive forecast reflects Zscaler’s strong performance in the market and its ability to generate revenue even in challenging economic conditions.
Furthermore, Zacks Research also provided estimates for Zscaler’s future earnings, including Q2 2024 earnings at ($0.35) per share, Q3 2024 earnings at ($0.32) per share, and Q4 2024 earnings at ($0.33) per share. The full-year earnings estimate for 2024 is projected to be ($1.36) per share.
These optimistic projections have been supported by a number of analysts who recently weighed in on Zscaler’s stock. UBS Group, Canaccord Genuity Group, Mizuho, Evercore ISI, and Stifel Nicolaus have all increased their target prices and ratings on the company’s shares due to its consistent growth and positive business outlook.
However, it is worth noting that despite these favorable projections and analyst recommendations, some caution should be exercised when considering investment opportunities. While Zscaler has demonstrated impressive growth potential and a solid track record, market conditions can be unpredictable and volatile.
In related news, CEO Jagtar Singh Chaudhry recently sold a significant number of shares in two separate transactions on September 18th. The chief executive officer offloaded 2,844 shares at an average price of $154.45 each, totaling almost $439 thousand in value. Similarly, CFO Remo Canessa sold 18,693 shares at an average price of $154.28 each for a cumulative value of over $2.8 million.
These insider sales, while relatively small compared to the total number of outstanding shares, can sometimes raise questions among investors. However, it is essential to understand that executives may sell their shares for various reasons, including diversifying their portfolios or meeting financial obligations. Overall, these transactions should not be interpreted as a negative indication of Zscaler’s prospects.
Zscaler’s stock opened at $148.79 on Friday, showcasing its significant market capitalization of $21.90 billion. The company operates with a P/E ratio of -105.52 and has a beta of 0.85, indicating its correlation to the broader market swings. Zscaler’s stock has encountered a range between $84.93 and $185.99 over the past year.
As institutional investors continue to make moves in the market, several hedge funds have recently adjusted their positions in ZS. Romano Brothers AND Company purchased a new position during the second quarter worth approximately $223 thousand. Headlands Technologies LLC acquired shares during the first quarter valued at around $68 thousand.
While there are positive signs surrounding Zscaler’s future performance and investor confidence remains high with an average target price of $182.69 from analysts surveyed by Bloomberg.com, it is important for potential investors or stakeholders to conduct thorough research and consider all relevant factors before making any investment decisions regarding ZS stock.
Overall, Zscaler continues to be well-positioned within its industry and is expected to create shareholder value through innovative offerings and strategic initiatives moving forward.